Profiling Private-Label Avoiders

Many food retailers offer private-label products because of the strategic benefits they provide.
Growing private-label sales could be advantageous for both retailers and private-label
manufacturers. Conventional wisdom leads us to believe it would be ineffective to use
traditional market segmentation and targeting to grow private-label sales because socio-demographics
are not strongly linked with private-label attitudes or purchases. However, many
studies found that perceived risks are associated with private-label attitudes and purchases. This
study uses a survey to identify individuals who perceive there to be significant risks with private-label
purchases or use. The profile of these private-label avoiders could provide retailers and
private-label manufacturers with segmentation and targeting information and help them grow
their businesses.